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Diploma PLC on Tuesday reported profit growth in its full-year results, driven by a high revenue in its Controls business. The London-based supplier of specialised technical products and services said pretax profit for the financial year that ended September 30 rose 41% to £248.3 million from £176.6 million. Driving the bottom line, revenue increased 12% to £1.52 billion from £1.36 billion, with organic revenue growth of 11% compared to 6% the year before. Lower operating and financial expenses also bolstered the bottom line. The Controls segment constituted the largest proportion of Diploma’s total revenue, which the company described as delivering ‘such a strong performance’. Its revenue rose 28% to £836.4 million from £652.4 million. Diploma attributed the growth to the segment’s aerospace exposure, data centre tailwind, and the performance of defence and energy markets. Seals revenue fell 6.8% to £456.0 million from £489.1 million. Despite seeing growth in North America, overall Seals revenue was hurt by soft markets in the UK, Europe and Australia, according to the company. Life Sciences revenue grew 4.6% to £232.1 million from £221.9 million. Diploma said strong performance in Canada was offset by flat revenue in Europe. Diluted earnings per share grew 43% to 137.3 pence from 96.1p. Diploma declared a full-year dividend of 62.3p, up 5.1% from 59.3p the year before. Looking ahead, the company said that financial 2026 is ‘off to a strong start’. Organic growth is expected to be 6%, which Diploma said is due to a ‘very strong’ second half of 2025 comparative. Diploma expects the year’s operating margin to be flat at approximately 23%. ‘It’s been another great year,’ said Chief Executive Johnny Thomson, adding: ‘These strong results demonstrate how we balance ambitious earnings growth and disciplined returns in good times and bad to build on our long track record of sustainable quality compounding. ‘We have great momentum into the new year. The quality and diversity of our portfolio positions us well for structural organic growth. Our acquisition pipeline is healthy.’ Shares in Diploma fell 0.6% to 5,230.00 pence a share on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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